Carta, the $7.4 billion software company who trucks in the purchase and sale of secondary, private market equity shares, is shutting down part of its business following allegations that it had tried to trade customers’ shares without their consent. The company’s reputation has been severely damaged by claims its staff used confidential information to solicit start-up investors to sell their stakes in the secondary market without consent. CEO Henry Ward wrote, “Because we have the data, if we are trading secondaries, people will always worry that we are using the data, even if we are not. So we have decided to prioritize trust, and exit the secondary trading business.”
Carta Shuts Trading Platform After Data Privacy Breach Allegations
